Wall Street plays an important function in a capitalist system in raising and allocating capital. Crony Wall Street is different, it operates off of government rules, regulations and money.
The economist Murray Rothbard once asked Ludwig von Mises at what point on the spectrum of statism is the point that designates a country as "socialist." To his surprise, Mises said that there was, indeed, a clear-cut delineation: The Stock Market.
Mises said, "A stock market is crucial to the existence of capitalism and private property. For it means that there is a functioning market in the exchange of private titles to the means of production. There can be no genuine private ownership of capital without a stock market: there can be no true socialism if such a market is allowed to exist."
Zachary Warmbrodt at Politico reports:
TRUMP CAMPAIGN CEO TAKES AIM AT WALL STREET - Breitbart News Executive Chairman Steve Bannon, the new chief executive of Donald Trump's campaign, worked for years at Goldman Sachs, but has spent the latest chapter of his life in the populist lane of politics and media, notably by capitalizing on anti-banker sentiment after the 2008 financial crisis. Bannon'sascendance to the top of Trump's team elevates the political profile of a media power player who's made major contributions in stoking right-wing anger over Wall Street - at a time when bankers are taking heat from both the left and the right
.How did Bannon transition from financial dealmaker to anti-establishment champion? "I turned on Wall Street for the same reason everybody else did," Bannon told Bloomberg's Joshua Green in a must-read profile in October. "The American taxpayer was forced to cut mook deals to bail out guys who didn't deserve it."
Bannon wrote and directed a 2010 documentary about the nation's financial meltdown, "Generation Zero." He's a major player behind the conservative Government Accountability Institute, which has criticized President Barack Obama's administration for not filing more criminal charges against top executives at financial institutions and for "shielding Big Finance from anything like a severe accounting."
And in a potential sign of Trump campaign attacks to come, he has made a point to highlight the "burning anger" within the progressive left about Bill and Hillary Clinton's "ownership by Wall Street and investment banks."
BANKER REACTION - A Wall Street source told M.M.: "For a guy who likes to bash Wall Street all day long, it's interesting that Trump has chosen two top lieutenants (Bannon and [Trump national finance chairman Steven] Mnuchin) who were trained at Goldman Sachs. Just as he seems to turn to Deutsche Bank every time he needs funding for a casino or hotel. Maybe he needs Wall Street more than he'd care to admit."
MORE ON BANNON'S ROLE - From my POLITICO colleagues: "Bannon has been quietly advising people around the Trump campaign for months, but has no actual campaign experience. His role as 'CEO' is unclear, although campaign sources expect him to provide more creative and communications-related input rather than filling a managerial role."Note Well: Like Trump, it appears that Bannon also fails to understand the role of the Federal Reserve in the business cycle. He is swiping at the parasites and not the beast where the parasites live.
Trump is probably worse, During his "Law and Order" speech Tuesday, he lumped Wall Street investors with the political class:
Every insider, getting rich off of our broken system, is throwing money at Hillary Clinton. The hedge fund managers, the Wall Street investors, the professional political class.